Cronulla sees $54 million group strata sales after new rules

Iridium Developments has bought four freestanding unit blocks from two strata corporations for $54 million in Sydney’s beachside southern suburb Cronulla, possibly the first group strata sale in NSW of its kind after new rules were implemented. 

The deal was struck in one line and the company is expected to demolish the buildings and construct a new complex, according to a report in The Australian.

The new strata laws, which came into force in in November 2016, say owners can sell and redevelop their block if 75 percent of owners agree and if some other conditions are met. According to government data, more than a quarter of NSW's population lives in, owns or manages strata.

Iridium Developments is backed by the Manassen family which has a track record in other Sydney developments.

The deal was brokered by JLL’s Dylan McEvoy, the report said. The firm said the deal was one of the first group strata sales of its kind in NSW after changes to the state’s strata laws. 

The blocks — 49-51 and 55-57 Gerrale Street — are opposite Cronulla Beach. 

The dated three-storey structures comprise 32 older, one-bedroom apartments. The site area of 2,921 square metres presented as a strong opportunity for redevelopment, and has potential for a nine-storey mixed-use development in the future.

McEvoy was cited by The Australian as saying the owners of the apartments were a diverse group and included investors.

“With a total sale price of $54m, each owner will take home a significantly higher sale price for their apartment than if sold individually. Most owners achieved two to three times the current market value of their apartments,” he said.

McEvoy said he was already seeing an increase in vendors inquiring about how the process could unlock the values of their buildings.

According to the report, John Thomas, chairman of the group of Gerrale Street residents, said the release of new planning rules in Sutherland Shire brought about changes to zoning which had added significant value to properties.